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WPX Energy (WPX) to Post Q4 Earnings: What's in the Offing?

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WPX Energy Inc. (WPX - Free Report) is scheduled to release fourth-quarter 2019 results on Feb 26. In the last reported quarter, the company delivered a negative earnings surprise of 18.2%.

Let’s see how things have shaped up before the upcoming earnings announcement.

Factors to Consider

WPX Energy’s fourth-quarter oil production is anticipated to have improved from a year ago, primarily due to the wells that were completed in the late second quarter or early July. Higher year-over-year production volumes from Delaware and Williston Basins are likely to have boosted performance of the company.

Its strategic transformation via selling off non-core assets, making acquisitions, repurchasing shares and refinancing of high-interest debts is likely to have had a positive impact on fourth-quarter performance.

Q4 Expectation

WPX Energy expects fourth-quarter oil production within 109,000-111,000 barrels per day, up 4% from the previous estimate. The company’s capital expenditure guidance for the quarter is projected in the range of $260-$275 million.

The Zacks Consensus Estimate for fourth-quarter 2019 total production is pegged at 175,000 barrels of oil equivalent per day, which indicates a 12.2% increase from the year-ago reported figure. Out of the total fourth-quarter production, nearly 63% is expected to be oil.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for WPX Energy this time around. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.

WPX Energy, Inc. Price and EPS Surprise

WPX Energy, Inc. Price and EPS Surprise

WPX Energy, Inc. price-eps-surprise | WPX Energy, Inc. Quote

Earnings ESP: The company’s Earnings ESP is -0.69%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, WPX Energy carries a Zacks Rank #3.

Stocks to Consider

Here are a few companies worth considering from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

Berry Petroleum Corporation (BRY - Free Report) is set to release fourth-quarter results on Feb 26. It has an Earnings ESP of +5.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chesapeake Energy Corporation (CHK - Free Report) is slated to release fourth-quarter results on Feb 26. It has an Earnings ESP of +2.13% and a Zacks Rank #3.

Apache Corporation (APA - Free Report) is slated to release fourth-quarter results on Feb 26. It has an Earnings ESP of +20.95% and a Zacks Rank #3.

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